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MacLac said:
Layman’s terms please Ian…..for those who do not understand “cap rates.”
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Capitalization rate (cap rate) is an estimate of an income-producing property's potential, unleveraged return on investment. It is calculated as:
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Net Operating Income (NOI)÷Current Market Value/Price

It is an indication of the expected annual percentage yield if the property was purchased entirely with cash with NOI being the actual income in place on closing, not what it might be projected to be in the future.
 
inclusion said:
By that logic, I should throw the computer I'm typing on out the window.............afewwafsssssssssssssssssssssssssssssssss
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Hard to get away from large multi national businesses and Amazon is a good example of the type of company that does well in the liberal trading system we have, or perhaps I should say had.

I feel some people would call such business owners globalists or global elite, interestingly the owner has managed to ingratiate himself with the current US government, despite their supposed aversion to this.
 
They have more people with money there willing to risk some of it, but that does not always mean they make good decisions.
 
David A said:
edmontonjournal.com

Is it cheaper to rent or own a home in Edmonton?

Edmonton’s relatively low-cost real estate market has homeowners coming out ahead financially of renters, new Zoocasa study shows.
edmontonjournal.com edmontonjournal.com
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One cost not included in the Zoocasa report is property taxes, which pushes the monthly expense higher for owners. Yet the study also did not include the ongoing advantage of paying down the principal with each mortgage payment.

How is this "study" even newsworthy then? These are two of the most obvious parts of the home ownership equation. Nice work Edmonton Journal..
 
degrandprix said:
One cost not included in the Zoocasa report is property taxes, which pushes the monthly expense higher for owners. Yet the study also did not include the ongoing advantage of paying down the principal with each mortgage payment.

How is this "study" even newsworthy then? These are two of the most obvious parts of the home ownership equation. Nice work Edmonton Journal..
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Zoocasa? Mi Casa?!
 
degrandprix said:
One cost not included in the Zoocasa report is property taxes, which pushes the monthly expense higher for owners. Yet the study also did not include the ongoing advantage of paying down the principal with each mortgage payment.

How is this "study" even newsworthy then? These are two of the most obvious parts of the home ownership equation. Nice work Edmonton Journal..
Click to expand...
News articles, particularly in the print media are not as rigourous as they used to be and important points do tend to get missed or glossed over a lot these days.

I suspect there is some offset between these two items, but that may have gotten edited or left out because this would take away valuable space for car ads.
 
^
The second realtor quoted did point out the principal retirement of the mortgage as a plus. He didn’t comment on the missing expenses - everything from painting to carpet repair to reroofing to appliance and hot water tank and furnace repairs and replacement - often when it’s most inconvenient and sometimes necessitating the use of borrowed money.

The other thing that always gets ignored is the opportunity cost of paying more to own than renting. Investing that money every month would provide a tidy chunk of cash over whatever time frame is being looked at and, using RRSP’s and TFSA’s would, like appreciation and principal repayment on the home/mortgage, also be tax free.
 
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